TechFlow news — Van Buren Capital partner Scott Johnsson on Tuesday spotted a previously overlooked detail in the March filing documents for an Ethereum ETF, indicating that the SEC might be considering treating ETH as a security, potentially leading to a rejection of the spot ETF application this month.
Specifically, according to the document, the rule defines "commodity-based trust shares" as securities that “(1) are issued by a trust holding (a) the designated commodity deposited into the trust, or (b) the designated commodity and cash in addition to that designated commodity; (2) are issued by the trust in specific minimum aggregate amounts in exchange for a specified quantity of the underlying commodity and/or cash; (3) when aggregated in identical specific minimum amounts, can be redeemed from the trust upon the holder’s request, with the trust delivering to the redeeming holder the corresponding amount of the underlying commodity and/or cash.”
